5G cybersecurity market to reach $16 billion by 2028

The 5G network security market is expected to grow significantly at a compound annual growth rate of 41.82% and reach a valuation of $16.159 billion by 2028, up from $1.986 billion in 2022, according to a study by Knowledge Sourcing Intelligence.

The escalation of cyber threats appears to be the main catalyst for the growth of the 5G cybersecurity market. As cyber threats become more advanced and sophisticated with the introduction of 5G networks, the demand for cybersecurity measures to protect important and confidential data increases. According to the World Bank, cyberattacks are worth an estimated $5.2 trillion globally. Worryingly, approximately 10.5 million files are lost or stolen every month, which is equivalent to 438,000 files per hour. A single large-scale attack has the potential to cause economic losses of $53 billion.

When defining 5G network security, it represents the measures and protocols used to protect the fifth generation (5G) wireless networks from potential threats and vulnerabilities. Network security provides protection to many industries in the form of firewalls, SSE, SWG, WAF, etc.

The 5G network security market has also seen a slew of product launches and partnerships, driving its growth. An example is Atos’ 5Guard security service, launched in February 2023. It provides enterprises and telecom companies deploying private 5G networks with a way to better protect their assets and customers. In November 2023, Palo Alto Networks launched five new ML-powered next-generation firewalls (NGFWs) designed to address highly evasive threats in 5G service networks.

The 5G network security market can be divided into three categories based on its form: physical, virtual, and SaaS. Among them, the physical form factor currently has the largest market share. It is also divided into five categories based on type, namely firewall, SSE, SWG, WAF, etc. WAF is particularly popular in protecting web applications from specific threats. From the industry perspective, industries such as banking, telecommunications, government, and manufacturing all rely on 5G network security, among which the telecommunications industry is the largest user of these solutions.

Geographically, North America is expected to contribute a significant share to the 5G cybersecurity market. This expectation is in view of the significant investments made by many governments in the region in cybersecurity. For example, according to the White House, the bipartisan infrastructure bill allocated $1 billion for cybersecurity for state, local, tribal, and territorial governments. In addition, the Canadian Minister of Innovation, Science, and Industry revealed a new Cybersecurity Innovation Network program in May 2021 to provide $80 million in funding for cybersecurity research and development in Canada.

The study identifies key players such as Nokia Corporation, Palo Alto Networks, F5 Inc., Fortinet, Mobileum Inc., SecurityGen, and AT&T Inc. as essential contributors to the development of the 5G Network Security Market.